Market Power Is a Form of Market Failure Because

question 16

Multiple Choice

Market power is a form of market failure because:

• A) Competition is restricted,output is reduced,and the price is higher.
• B) It involves externalities.
• C) Monopolies produce more output than is optimal.
• D) Administrative costs of compliance are high.

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Definitions:

Legal

Pertains to laws or the structure of rules that are enforced through social or governmental institutions to regulate conduct.

Illegal

Illegal pertains to actions or activities that are forbidden by law and subject to legal penalties.

Self Competency

The ability to understand and effectively manage one's own abilities and emotions in various situations.

Indra Nooyi

Former CEO of PepsiCo and a prominent business executive known for her leadership and influence in the global business landscape.